Western Sanctions Unintentionally Block Legitimate Ukrainian Users in Eastern Regions

Western sanctions have forced companies to restrict services in parts of eastern Ukraine, causing hardship for legitimate Ukrainian users, The Gaze reports, citing The Telegraph.

British companies, including leading fintech firms Revolut and Wise, have stopped providing services in areas of Ukraine that Vladimir Putin claims as annexed but are not yet under Russia's full control. This decision is related to Western sanctions against Russia, although it actually affects legitimate users in the Donetsk, Zaporizhzhia, and Kherson regions.

Mykola Kucheruk, owner of the Elite Line internet provider in Kramatorsk, emphasizes that these companies are unjustifiably blocking access to residents living in territory controlled by Ukraine, even though it is close to the front line. According to him, it is technically easy to separate users from Ukrainian networks without discontinuing services to them.

Despite the fact that Revolut and Wise continue to operate in most of Ukraine, residents of the east of the country face refusals to make payments and an almost complete shutdown of services, which creates serious difficulties for local residents in the difficult conditions of war.

It is reported that similar policies have been imposed by other global platforms, including Airbnb, Booking.com, Spotify, Duolingo, TikTok, eBay and Facebook Ads.

Companies explain restrictions in eastern Ukraine by citing economic sanctions, which, however, are not directed against Ukraine itself. Revolut states the need to strictly comply with the sanctions regimes of the UN, EU, UK, and US. 

At the same time, in practice, some companies do not distinguish between territories controlled by Ukraine and those occupied by Russia.

Not all companies apply sanctions to regions controlled by Ukraine. According to Kucheruk, companies could easily identify sanctioned territories by creating a “white list” with the help of internet providers. He adds: “If a place gets destroyed or is occupied, we can report it and have it moved to a blacklist. But these companies don’t even want to try.”

In March 2022, Airbnb ceased operations in Donetsk, even though the city is located in territory controlled by Ukraine, depriving local residents of the opportunity to earn money through the platform during the war. 

The company explained this by compliance with sanctions imposed by the US, EU, and other governments. At the same time, local residents criticize this position as unwillingness to help, although technically it would have been possible to avoid the blockages.

Unlike Airbnb, Google quickly corrected the mistake by unblocking access to basic services, showing that it is possible to do so without difficulty.

Read more in The Gaze: New Sanctions against Russia – How they Reduce its Ability to Wage War